Correlation Between Cognizant Technology and WNS Holdings
Can any of the company-specific risk be diversified away by investing in both Cognizant Technology and WNS Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cognizant Technology and WNS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cognizant Technology Solutions and WNS Holdings, you can compare the effects of market volatilities on Cognizant Technology and WNS Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cognizant Technology with a short position of WNS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cognizant Technology and WNS Holdings.
Diversification Opportunities for Cognizant Technology and WNS Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cognizant and WNS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cognizant Technology Solutions and WNS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WNS Holdings and Cognizant Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cognizant Technology Solutions are associated (or correlated) with WNS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WNS Holdings has no effect on the direction of Cognizant Technology i.e., Cognizant Technology and WNS Holdings go up and down completely randomly.
Pair Corralation between Cognizant Technology and WNS Holdings
Given the investment horizon of 90 days Cognizant Technology Solutions is expected to generate 0.58 times more return on investment than WNS Holdings. However, Cognizant Technology Solutions is 1.72 times less risky than WNS Holdings. It trades about 0.05 of its potential returns per unit of risk. WNS Holdings is currently generating about -0.03 per unit of risk. If you would invest 6,034 in Cognizant Technology Solutions on August 23, 2024 and sell it today you would earn a total of 1,852 from holding Cognizant Technology Solutions or generate 30.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cognizant Technology Solutions vs. WNS Holdings
Performance |
| Timeline |
| Cognizant Technology |
| WNS Holdings |
Cognizant Technology and WNS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cognizant Technology and WNS Holdings
The main advantage of trading using opposite Cognizant Technology and WNS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cognizant Technology position performs unexpectedly, WNS Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WNS Holdings will offset losses from the drop in WNS Holdings' long position.| Cognizant Technology vs. WNS Holdings | Cognizant Technology vs. CLARIVATE PLC | Cognizant Technology vs. Gartner | Cognizant Technology vs. Broadridge Financial Solutions |
| WNS Holdings vs. Fidelity National Information | WNS Holdings vs. International Business Machines | WNS Holdings vs. Kyndryl Holdings | WNS Holdings vs. DXC Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |